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Below is an in-depth analysis and side-by-side comparison of The Closet Factory vs USA Insulation including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $208,500 - $356,000 | $170,500 - $346,000 |
Franchise Fee | $46,500 | $50,000 |
Royalty Fee | 5.75% | 5% |
Advertising Fee | - | 2% |
Year Founded | 1983 | 1985 |
Year Franchised | 1986 | 2007 |
Term Of Agreement | 5 years | 5 years +5+5+5 |
Term Of Agreement | 5 years | 5 years +5+5+5 |
Renewal Fee | $7K | - |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | -/- |
Start-up Costs | No/Yes | -/Yes |
Equipment | No/Yes | -/Yes |
Inventory | No/Yes | -/Yes |
Receivables | No/No | -/Yes |
Payroll | No/No | -/Yes |
Training & Support |
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Training | - | USA Insulation provides an initial 3-4 week training program. There is a mix of classroom learning, practical application and on-the-job training. You will be certified by the best in the business - USA Insulation's Training & Sales team. On-The-Job Training: 32 hours Classroom Training: 32 hours |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | USA Insulation supports our Franchisees throughout the Franchise process. From Training and Site Selection to Sales and Continuing Education, our support team is there to guide you through the growth of your business. Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Proprietary Software Franchisee Intranet Platform |
Marketing | Co-op advertising, Ad slicks, National media, Regional advertising | The sales process starts with marketing and lead generation. We will provide our franchisees with marketing tools including television, radio and print creative, direct mailer pieces and couponing methods. We will also be provide our various proven lead generating programs. In addition, we will provide guidance and expertise on media planning and strategies. Every market is different, so USA Insulation is committed to tailoring a Marketing Campaign to your market's needs. Ad Templates Social media Website development |
Operations |
International franchisees required to buy multiple units/master licenses; 30% of all franchisees own more than one unit Number of employees needed to run franchised unit: 6 Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators) | The USA Insulation System incorporates lead generation, Sales, Installation, Management, and everything in between. All Franchisees are given an Operations Manual as a ready reference, and support staff is only a call away. Our proven systems for Sales, Installation and Revenue Generation are time-tested and refined by Francorp, one of the Franchise industry leaders. Absentee Ownership Allowed Number of Employees Required to Run: 8 - 12 |
Expansion Plans |
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US Expansion | - | Yes |
Canada Expansion | No | - |
International Expansion | Yes | - |
John LaBarbera founded The Closet Factory in a small industrial space in Los Angeles in 1983. The company started out with six employees customizing closets, offices, garages and pantries, and now has more than 100 employees at its Los Angeles headquarters. There are also 11 other factories around the world.
The Closet Factory works with homeowners, contractors and interior decorators, installing closets, entertainment centers, pantries and shelves for offices and garages.
You are unique and so are your needs. No one knows that better than The Closet Factory. When it comes to creating custom solutions that are imaginative, well organized and satisfy your design sensibilities, The Closet Factory believes the process must begin with a partnership between you and one of our designers.